Jason Rines (iThinkBig)

Why Startups Needn't Be Depressed

In principle, Jason is correct but the last few years for attempting to raise money were already difficult. Wealth creates wealth. Power brokers that could invest wanted the next Google, investing 1-5 million on a start-up or early stage was considered a waste of time. I could have taken 15-30 million for my Consumer Healthcare company. But in doing so, I would have had to inflate all the costs in other words be dishonest about running the company for the investors. So the core economic model of excess liquidity was the real problem for start-ups. Next year should be better as private equity looks to the innovators once again.

The last few years innovation was paper by the power brokers. That was wonderful if you were already very wealthy but horrid for the economy as a whole of if you were attempting to raise money for a start up. The good news for investors is you have quite a bit of young, passionate talent that will work there bags off to turn a dime and properly manage an investment. I disagree with about the former hotshot managers from the dot.com era. They are spoiled brats and have enough wealth not to provide full effort, transparency etc. I would not hire one if my life depended on it. They create revolt on the tech team side if they are not given everything they want. Give me a decently educated family guy for a manager that feels making a living there first priority through creating profit.